Posted 8.31.13 @ 9:15
Lenders can and will monitor your purchases until closing – it’s important to make each purchase count! The last thing you want is to go on a spending spree to furnish your home right before you close; the lender will wonder why you’re putting a $5k 3DTV on a credit card. When it comes down to it, you’re just going to want to err on the side of caution in the days leading up to buying a home. Even if you are going mostly with cash when you’re buying a home, just be careful. When you’re buying or refinancing a home your lender is going to keep an eye on things until closing.
Credit Changes Affect Eligibility
Any changes in your credit can affect your eligibility, so until you sign on that dotted line nothing is final. Changing jobs, shopping for a new car or other big life changes should be avoided when you’re trying to buy a home. Basically if anything in your credit picture changes before you sign for the loan at closing you could be in for a world of hurt.
If big changes are on the horizon, you may be better off just waiting to buy a new home if you can. It never hurts to look a little further ahead and get major purchases out of the way months before you buy a new home.
Many Lenders Using Smart Algorithms
One of the most interesting things about applying for a mortgage (or not so interesting, depending on how you look at it) is that your lender is keeping an eye on everything you do – even if you’re not buying a car, you could be applying for one. You could be making key purchases that show that you’re about to change your job or that you’re gearing up to redecorate or remodel your home. It’s stuff like that that gets the attention of your lender.
If you’ve ever made a purchase out of the ordinary (like buying gas at a new gas station) you may have received a call from your card issuer asking you if you made this purchase. It’s great when you’re worried about someone skimming your card, but it’s not so great when you’re trying to apply for a mortgage to buy a luxury home.
Affects Low to Midrange Buyers More Than Luxury Buyers
These kinds of problems tend to affect midrange buyers more than luxury buyers, but when you have a home worth millions of dollars on the line, it never hurts to make sure that you’re doing everything you can to keep the ball rolling.
While we can’t tell you exactly what purchases will trigger the alert, we can help you find a great luxury home that will suit your needs. Give us a call today and find out what kind of home is waiting for you in Oakville.